Donkey Kong's dodge moves aren't that good, but not to the point where they make him on the level of Sheik.
And here's the most fun you can have with only two people: do a tournament, with 64 entrants, and two people per match, and stock one with no time limit. Just use whatever characters the computer randomly picks, and play the tournament with one person always being player one and the other person always being player two.
It's fun as hell, and a good way to kill an hour.